In a move that reflects the ongoing struggles in the technology sector, Microsoft is set to announce significant layoffs, with reports indicating that the company plans to cut around 5% of its workforce or approximately 11,000 roles. Read more about this news below:
Microsoft, the multinational technology company, is reportedly planning to cut thousands of jobs in its human resources and engineering divisions. This news comes amid a trend of retrenchment in the US technology sector, as companies like Amazon and Meta Platforms have also announced job cuts in response to slowing demand and a worsening global economic outlook.
According to sources, Microsoft plans to cut about 5% of its workforce or around 11,000 jobs. The company is reportedly planning to make cuts in a number of engineering divisions on Wednesday, and may also cut recruiting staff by as much as one-third. These cuts are expected to be significantly larger than previous rounds of layoffs at the company.
Microsoft has not yet commented on these reports. As of June 30, the company had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally. The company is under pressure to maintain growth rates at its cloud unit Azure after several quarters of the downturn in the personal computer market hurt Windows and devices sales.
In July of last year, Microsoft announced that a small number of roles had been eliminated. In October, news site Axios reported that the company had laid off under 1,000 employees across several divisions. Despite these reports, shares of Microsoft were marginally higher in late afternoon trading. The company is set to report its quarterly results on January 24.